Question
Slow Watch Company has a levered beta of 1.10, its capital structure consists of 44% debt and 56% equity, and its tax rate is 40%.
Slow Watch Company has a levered beta of 1.10, its capital structure consists of 44% debt and 56% equity, and its tax rate is 40%. What would Slow Watch's beta be if it used no debt, i.e., what is its unlevered beta?
| 0.64 | ||
| 0.67 | ||
| 0.71 | ||
| 0.75 | ||
| 0.79 |
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Corporate Finance A Focused Approach
Authors: Michael C. Ehrhardt, Eugene F. Brigham
8th Edition
0357714636, 9780357714638
